Should you renovate or rebuild that run-down old home that you purchased because of the potential? You might be surprised by the answer. It is not uncommon for someone to purchase a property that they thought would be a certain tear down, only to find that the bones are much better than they originally thought.
On the other hand, sometimes when people originally plan to just remodel a home, they find that it makes much more financial sense to just tear it down and start from scratch. So how do you know which option is best for your unique investment property?
Here are three questions to ask yourself when trying to make this decision.
Is there any structural integrity to redeem?
Before you consider renovating rather than rebuilding, it is important to know whether this is even an option. The structure of the home can play a huge role in determining that. Like everything else, a home undergoes a lot of wear and tear during its lifetime. Sometimes these things are just not something that can be repaired. If you spend a lot of money updating and renovating a house that does not have a solid foundation, then you may end up running into irreparable damage in the long run, which would not only be a greater money pit, but it could also be unsafe for any inhabitants.
Do you have any emotional attachment to the home?
Once you identify that remodeling is even an option, the next question is: would it be worth it? For some, this goes beyond the finances. In some cases, the emotional appeal of the home is reason enough to salvage it. If you have an emotional attachment to the home, be it the home you grew up in, or a home inherited from a family member, it might be worth it to consider options of remodeling.
Does the floor plan make sense?
Beyond structural problems, the other reason to tear down and rebuild a home is if the floorplan simply doesn’t make sense. The layout of older homes does not always correlate to what people seek on the market today. For example, master suites are a major fad today that people rarely integrated into their homes in the 1950’s. With this in mind, some floor plans may not make sense to maintain if you are seeking a marketable profit in your investment. In these cases, a rebuild may be a better option.
There are many components involved in purchasing a fixer-upper. Among these are a handful of legal dilemmas. Don’t enter these purchases alone. Our team of attorneys will fight to help ensure that you understand what you are signing on for and get the fairest deal possible. Contact Gurney Law today to learn more.